Just picked one of these up. My opinion on the sound....
1) it's pretty good
a) fair amount of bass
b) relatively smooth
c) seems to roll off early in the treble
not overly dynamic or detailed even as MP3 players go
I compared the same mp3 on two other sources (sorry I don't own an Ipod)
1) Archos Recorder running Rockbox is more detailed, better sense of rhythm and separation, better highs, but a little more jagged.
2) Dell Axim A5 sounds imilar to the Nex ii w/ much less bass and dynamics with pocket MVP instead of media player
couple big plusses for the Nex. the Archos always has the matter of the hard drive whirr, you get used to it, but it's annoying.
PDA's are nice in a pinch, but not really the greatest for bopping around, limited battery life. and you always worry about the screen.
the Nex really does fit in a shirt pocket....you can jog and walk with it relatively worry free....It's cheap.
one small pain, you really do have to format your CF cards to FAT rather than FAT 32 or it has problems with directories and freezes constantly.
I'm glad I have the Archos (hard drive players still have their place) but it's not perfect for all situations calling for a portable.
I still use my PDA for mp3's once in a while, when I don't want to carry multiple gadgets.
the Nex has its place and the sound quality wouldn't stop me from buying it vs. other portable mp3 players.
I would not however substitute it for an SACD player with Marsh Sound Design amplification etc. I am curious to see what happens after Fixup finishes whatever mod he's trying to the Nex.